The "Revenue Share", ranking of cellular operators revenue in Brazil must have some modifications in the 1st quarter of 2007 ( 1Q07).

Teleco's projections indicate that, keeping the current trends, in the last quarter of 2006 (4Q06) Tim's Net Revenue must be equal Vivo, and BrT GSm equal Telemig/ Amazônia Celular.

In such a way, Tim would exceed Vivo, first in Revenue and after that in cellulars amount. ( Consult: Will Tim exceed Vivo?). The same must occur between BrT and Telemig/ Amazônia celular.

This situation isn't new. It already occured when Tim exceeded Claro and is the biggest ARPU presented by Tim and BrT GSM.

Why the ARPU of Tim and BrT GSm is bigger than the other operators?

2Q06

ARPU (R$)

MOU

Pre-Paid

TIM

30.2

81

79.4%

BrT GSM

26.0

N.D.

67.5%

Vivo

24.1

66

81.5%

Claro

24.0

66

83.4%

Telemig

22.5

63

76.0%

Amazônia

21.9

67

80.1%

Oi

17.8

N.D.

80.0%

Tim has gotten clients with bigger use of cellular - voice calls. MOU (monthly minutes of use per cellular) of Tim is 81 minutes, the best of the market.

The numbers of ARPU and MOU of Vivo aren't so good because of the break up in 1.8 million cellulars promoted by the operator in the 2Q06, influencing the average number of cellulars. Correcting this effect ARPU goes up to R$ 24.9 and MOU to 68 minutes still distant values of the ones gotten by Tim.

The Revenue of datas/ VAS, although growing in the two operators, is not making a difference in the dispute between Vivo and Tim. In the 2Q06 the Gross Revenue of datas/VAS of Vivo was R$ 230 million and Tim R$ 237 million.

BrT GSM don't publish its MUO indicator, but it presents minor percentile of pre-paid of the market (67.5%).

Telemig and Amazônia Celular are also losing the best clients and turn its ARPU to disastrously fall down in 2006. These operators are paralyzed by the joint conflict (More details). Telemig has been suffering with this competition in Minas Gerais, with the entrance of Claro, in operation since 2005, 4th operator of the region.

Looking at the text above you could ask:

Will Tim exceed Vivo in Revenue Share? Or Vivo will recover itself?

If Tim exceed Vivo, When will it happen?

And Claro? Will also compete to the 1st rank?

How will the sale of operators such as Telemig, Amazônia Celular or BrT GSM modifie this situation?

How can it increase MOU of the cellular operators? And the revenue of datas/VAS?